News Update

J&K Unveils New Startup Policy to Foster Entrepreneurial Growth

• ByStartupStory     |    February 24, 2024

The Jammu and Kashmir administration, led by Lieutenant Governor Manoj Sinha, has approved a new startup policy aimed at fostering entrepreneurial growth in the Union Territory, with a focus on students, women, and high-net-worth individuals (HNIs). According to an official spokesperson, the policy aims to establish 2,000 new startups by 2027, with support extended through government initiatives, private entities, and HNIs to facilitate startup setup. As part of this initiative, the administration plans to establish a Venture Capital Fund of ₹250 crore, with an initial capital injection of up to ₹25 crore. The fund will primarily invest in recognised startups within J&K, with detailed modalities to be worked out in consultation with the finance department.

The J&K Entrepreneurship Development Institute (JKEDI) is tasked with developing a mechanism for the allotment of land to startups displaying significant growth potential. Additionally, startups recognised by JKEDI will receive one-time seed funding assistance of up to ₹20 lakh, provided in four equal instalments, with a cap of 25 startups per year. The government aims to establish 2,000 startups over the next three years, prioritising quality over quantity and carefully selecting startups for seed funding support.

The budgetary allocation for implementing the startup policy over three years is set at ₹39.60 crore. To ensure effective implementation, a high-powered committee led by the chief secretary will monitor the scheme’s progress, while a task force committee headed by the administrative secretary of Industries and Commerce will oversee day-to-day implementation. 

According to an official spokesperson, the decision to revamp the startup policy reflects the administration’s commitment to nurturing entrepreneurial talent in Jammu and Kashmir. Stakeholder consultations highlighted the need to strengthen the incubation and acceleration ecosystem for startups, a concern addressed in the updated policy.

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